Questions
Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 50,000 Sales tax...

Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 50,000 Sales tax 2,700 Freight charges for shipment of equipment 750 Insurance on the equipment for the first year 950 Installation of equipment 1,500 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

In: Accounting

Pretend it is early 2002 and you are Senator Paul Sarbanes.  What would you do differently when...

Pretend it is early 2002 and you are Senator Paul Sarbanes.  What would you do differently when writing the Sarbanes-Oxley Act? (Do not say you think it is perfect and you would not do anything differently. Discuss at least two things you would do differently.please explain in detail.

In: Accounting

In this problem, you will apply the concept of present value to find at what amount...

In this problem, you will apply the concept of present value to find at what amount a bond payable should be recorded. I encourage you to use Excel to find the answer.

Company ABC needs $1,000,000 for an investment but does not have enough cash to finance the opportunity. After considering its options, ABC decides to finance the investment using debt. Unfortunately, ABC is unable to find a single creditor willing to lend it the entire $1,000,000. Instead, it finds four creditors each willing to lend it $250,000. All four lenders agree that they ought to earn 8% annual interest on their investment. However, each lender wants its $250,000 returned at a different point in time. One lender demands repayment after five years, the next ten years, the third fifteen years, and the final twenty years. ABC agrees to make annual payments totaling $12,000 to each lender while the principal balance of $250,000 is outstanding (for example, through years one through five for the first lender).

What is the value of the liability that Company ABC must record for the above financing plan? Round your answer to the nearest dollar.

In: Accounting

Define in own words please CHAPTER 6 – Accounting for Merchandising Businesses Asset turnover Cost of...

Define in own words please

CHAPTER 6 – Accounting for Merchandising Businesses

  1. Asset turnover
  2. Cost of merchandise sold – (5 points extra – if you can tell me what this is also known as) You will hear this acronym more often than Cost of merchandise sold…
  3. Credit memo
  4. Credit terms
  5. Debit memo
  6. FOB (free on Board) destination
  7. FOB (free on board) shipping point
  8. Gross profit
  9. Operating income
  10. Invoice
  11. Purchases discounts
  12. Purchases returns and allowances
  13. Sales discounts
  14. Trade discounts
  15. Administrative expenses (general expenses)

In: Accounting

a company purchases inventory during the year in four batches, with unit and price amount shown...

a company purchases inventory during the year in four batches, with unit and price amount shown below:

Batch 1 - 9,500 units @ $2.10 per unit
Batch 2 - 4,300 units @ $2.08 per unit
Batch 3 - 3,600 units @ $2.04 per unit
Batch 4 - 7,200 units @ $2.01 per unit

10,800 units were sold after Batch 2 was purchased, while 3,400 units were sold after Batch 3 was purchased.

1. calculate cost of goods sold and ending inventory under the LIFO method, using the perpetual inventory system.

2. Calculate cost of goods sold and ending inventory under the lifo method, using the periodic inventory system

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Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base....

Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as well.)

b. Prepare a vertical analysis of the balance sheet data for Nike for 2020.

Prepare horizontal and vertical analyses.

E13.6 (LO 2) Here are the comparative income statements of Delaney Corporation.

Delaney Corporation

Comparative Income Statements

For the Years Ended December 31

     2020      2019
Net sales      $598,000      $500,000
Cost of goods sold 477,000 420,000
Gross profit 121,000 80,000
Operating expenses 80,000 44,000
Net income $ 41,000 $ 36,000

In: Accounting

what is accrual depreciation? how is it calculated. someone give an example please

what is accrual depreciation? how is it calculated. someone give an example please

In: Accounting

Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...

Multiple-Step Income Statement and Report Form of Balance Sheet

The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:

Cash $111,300 Gerri Faber, Drawing $66,700
Accounts Receivable 302,100 Sales 4,025,000
Merchandise Inventory 338,400 Cost of Merchandise Sold 2,358,600
Estimated Returns Inventory 13,350 Sales Salaries Expense 663,300
Office Supplies 10,500 Advertising Expense 182,400
Prepaid Insurance 8,100 Depreciation Expense—Store Equipment 35,500
Office Equipment 245,000 Miscellaneous Selling Expense 15,600
Accumulated Depreciation—Office Equipment 166,500 Office Salaries Expense 362,100
Store Equipment 764,800 Rent Expense 53,500
Accumulated Depreciation—Store Equipment 245,000 Insurance Expense 16,600
Accounts Payable 169,500 Depreciation Expense—Office Equipment 26,700
Customer Refunds Payable 26,700 Office Supplies Expense 9,800
Salaries Payable 10,800 Miscellaneous Administrative Exp. 7,100
Note Payable (final payment due 2032) 355,000 Interest Expense 10,800
Gerri Faber, Capital 603,750

1. Prepare a multiple-step income statement.

2. Prepare a statement of owner's equity.

3. Prepare a balance sheet, assuming that the current portion of the note payable is $14,200.

4. Which type of income statement shows intermediate balances?

I think that I know some of these answers but I am concerned that I am getting the wrong answers.

In: Accounting

Coverall Inc. produces and sells a unique type of case for a standard-size tablet computer that...

Coverall Inc. produces and sells a unique type of case for a standard-size tablet computer that is guaranteed waterproof but still allows for regular functionality of the tablet. The company has just opened a new plant to manufacture these cases, and the following cost and revenue data have been provided for the first month of the plant’s operation in the form of a worksheet:

  
  Beginning inventory 0
  Units produced 20,000
  Units sold 15,000
  Selling price per unit $ 80
  
  Selling and administrative expenses:
     Variable per unit $ 6
     Fixed (total) $ 475,000
  Manufacturing costs:
     Direct materials cost per unit $ 12
     Direct labour cost per unit $ 9
     Variable manufacturing overhead cost per unit $ 5
     Fixed manufacturing overhead cost (total) $ 600,000

Since the new case is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.

Prepare a contribution format income statement for the month. (Do not leave any empty spaces; input a 0 wherever it is required.)

In: Accounting

Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s...

Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

Variable cost per unit:
Direct materials $ 25
Fixed costs per year:
Direct labor $ 1,242,000
Fixed manufacturing overhead $ 831,000
Fixed selling and administrative expenses $ 260,000

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 69,000 units and sold 69,000 units. During its second year of operations, it produced 69,000 units and sold 65,400 units. In its third year, Ogilvy produced 69,000 units and sold 72,600 units. The selling price of the company’s product is $59 per unit.

Required:

1. Assume the company uses super-variable costing:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

2. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

3. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3.

In: Accounting

Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year....

Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.

Tami’s Creations, Inc.

Income Statement

For the Quarter Ended March 31

Sales (29,000 units) $ 1,160,000
Variable expenses:
Variable cost of goods sold $ 475,600
Variable selling and administrative 195,750 671,350
Contribution margin 488,650
Fixed expenses:
Fixed manufacturing overhead 288,000
Fixed selling and administrative 214,150 502,150
Net operating loss $ ( 13,500)

Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.

At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:

Units produced 32,000
Units sold 29,000
Variable costs per unit:
Direct materials $ 7.50
Direct labor $ 7.30
Variable manufacturing overhead $ 1.60
Variable selling and administrative $ 6.75

Required:

1. Complete the following:

a. Compute the unit product cost under absorption costing.

b. What is the company’s absorption costing net operating income (loss) for the quarter?

c. Reconcile the variable and absorption costing net operating income (loss) figures.

3. During the second quarter of operations, the company again produced 32,000 units but sold 35,000 units. (Assume no change in total fixed costs.)

a. What is the company’s variable costing net operating income (loss) for the second quarter?

b. What is the company’s absorption costing net operating income (loss) for the second quarter?

c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.

In: Accounting

P. 5-1 Transactions may have significantly different impacts on a government's budget, governmental funds statements, and...

P. 5-1

Transactions may have significantly different impacts on a government's budget, governmental funds statements, and government‐wide statements.

A school district prepares its budget on a cash basis. It is contemplating the changes or actions that follow. For each, indicate the impact that the change would have (1) on year‐ending June 30 2020, general fund expenditures or transfers and (2) on year‐ending June 30, 2020, government‐wide expenses (e.g., “increase expenditures by $X” or “no impact”). Provide a brief explanation of your response, indicating that you are aware of the relevant financial reporting issue.

  1. Owing to a special discount offered by a supplier, the district will purchase $100,000 of supplies in June 2020 that they otherwise would not have purchased until July 2020. They will not, however, have to pay for the supplies until July. The district accounts for supplies on a consumption basis.
  2. In fiscal 2020, the district increases the number of vacation days to which employees are entitled to take, thereby increasing the cost of vacation leave that employees earned in 2020 but will take in subsequent fiscal years by $250,000. The vacation days vest; they can be taken as termination benefits.
  3. The district increased the number of sick days to which employees are entitled to take, thereby increasing the cost of sick days that employees earned in 2020 but will take in future years by $150,000. The sick leave can be taken only as employees are sick; it cannot be paid for as a termination benefit.
  4. In 2020, the district established a sabbatical leave program for certain categories of teachers. Teachers will be granted one year of leave after each seven years of service. Teachers granted the leave will have to spend it engaging in various specified activities, such as research, aimed at improving their teaching. Teachers will first be eligible to take the leave in 2027. The district estimates that one‐seventh of the cost will be $1,500,000.
  5. The district delayed from June to July the approval of a grant of $50,000 to a local health clinic that provides examinations to low‐income students. The funds are to be paid out of resources budgeted for the fiscal year ending June 30, 2020, and are intended for use by the clinic in that same period.
  6. The district delayed from June to July purchasing, and paying for, 10 school buses at a cost of $750,000. The buses are expected to last for 10 years and have no salvage value. The district charges depreciation on a straight‐line basis and takes a full year's depreciation in the year of acquisition.
  7. The district is required to transfer 50 percent of any annual surplus from the general fund to a “rainy day” fund (a special revenue fund). Usually the transfer based on the surplus of the fiscal previous year is made in December. The district proposes to delay the transfer that would ordinarily be made in December 2020 until July 2021, thereby decreasing its cash outlay for fiscal year 2020 by $3 million

I need copy and paste thx

In: Accounting

question 3. P13-12A The income statement and unclassified statement of financial position for E-Perform, Inc. follow:...

question 3. P13-12A The income statement and unclassified statement of financial position for E-Perform, Inc. follow:

E-PERFORM, INC.

Statement of Financial Position

December 31

  2018  

  2017  

Assets

Cash

$   97,800

$  48,400

Held for trading investments

 128,000

 114,000

Accounts receivable

  75,800

  43,000

Inventory

 122,500

  92,850

Prepaid expenses

  18,400

  26,000

Equipment

 270,000

 242,500

Accumulated depreciation

 (50,000)

 (52,000)

Total assets

$662,500

$514,750

Liabilities and Shareholders' Equity

Accounts payable

$ 93,000

$ 77,300

Accrued liabilities

  11,500

   7,000

Bank loan payable

 110,000

 150,000

Common shares

 200,000

 175,000

Retained earnings

 248,000

 105,450

 Total liabilities and shareholders' equity

$662,500

$514,750

E-PERFORM, INC.

Income Statement

Year Ended December 31, 2018

Sales

$492,780

Cost of goods sold

  185,460

Gross profit

307,320

Operating expenses

  116,410

Income from operations

190,910

Other revenues and expenses

  Unrealized gain on held for trading investments

$14,000

  Interest expense

  (4,730)

    9,270

Income before income tax

200,180

Income tax expense

45,000

Net income

$155,180

Additional information:

  1. Prepaid expenses and accrued liabilities relate to operating expenses.
  2. An unrealized gain on held for trading investments of $14,000 was recorded.
  3. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 long-term bank loan payable.
  4. Old equipment having an original cost of $57,500 was sold for $1,500.
  5. Accounts payable relate to merchandise creditors.
  6. Some of the bank loan was repaid during the year.
  7. A dividend was paid during the year.
  8. Operating expenses include $46,500 of depreciation expense and a $7,500 loss on disposal of equipment.

Instructions

(a) Prepare the statement of cash flows, using the direct method.

(b) E-Perform's cash position more than doubled between 2017 and 2018. Identify the primary reason(s) for this significant increase.

In: Accounting

C. Adidas Inc. had the following balance sheet on September 30, 2019 (in thousands): Assets Liabilities...

C. Adidas Inc. had the following balance sheet on September 30, 2019 (in thousands):

Assets

Liabilities and Stockholders’ Equity

Cash

445,421

Accounts Payable

687,121

Accounts Receivable

1,754,137

Notes Payable

553,153

Inventories

1,338,640

Other Liabilities

965,095

Equipment and

Total Liabilities

2,205,369

Other Assets

1,823,009

Stockholders’ Equity

3,155,838

Total Assets

5,361,207

Total Liabilities and Stockholders’ Equity

5,361,207

Consider the following transactions that occurred during the first half of October 2019 (in thousands):

1. Inventories were acquired for cash, P160.

2. Inventories were acquired on open account, P190.

3. Unsatisfactory shoes acquired on open account in June were returned for full credit, P40.

4. Equipment of P120 was acquired for a cash downpayment of P30 plus a 6-month promissory note of P90.

5. To encourage wider displays, special store equipment was sold on account to Makati area stores for P400. The equipment had cost P400 in the preceding month.

6. Sarah G. starred in a movie and as a favor to an Adidas executive, she agreed to display Adidas shoes in a basketball scene. No fee was paid by Adidas.

7. Cash was disbursed to reduce accounts payable, P170.

8. Collected cash on account, P180.

9. Borrowed cash from a bank, P500.

10. Sold additional common stock for cash to new investors, P900.

  • Prepare an analysis showing the effects of the October transactions on the financial position of Adidas.

  • Prepare a balance sheet as of October 15, 2019.

In: Accounting

High Country, Inc., produces and sells many recreational products. The company has just opened a new...

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Beginning inventory 0
Units produced 43,000
Units sold 38,000
Selling price per unit $ 79
Selling and administrative expenses:
Variable per unit $ 4
Fixed (per month) $ 556,000
Manufacturing costs:
Direct materials cost per unit $ 15
Direct labor cost per unit $ 7
Variable manufacturing overhead cost per unit $ 3
Fixed manufacturing overhead cost (per month) $ 774,000

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May.

In: Accounting